Effective tariffs lower than expected but may rise July 9; For some brands, "Made in USA" tried and found wanting

Maersk estimates that effective U.S. import tariffs on containerized goods are averaging about 21%—a sharp drop from a peak of 54% in early April after President Trump announced sweeping tariffs. This reduction followed a 90‑day suspension of many tariffs in April. The pause is set to expire soon, with a July 9 deadline for potential trade agreements between the U.S. and key partners; failure to reach deals could trigger renewed tariff hikes.

-Maersk reported many U.S. clients, especially in apparel and fashion, have shifted production away from China, reducing dependency to "single-digit" percentages. Since China does and will have some of the highest tariff rates, this is keeping the effective overall rate much lower than expected.
-However, sectors like home improvement still rely heavily on Chinese manufacturing due to the nature of their goods.
-With international stakeholders holding their breath ahead of the July/August negotiations, Maersk warns that the outcome of these talks will shape global trade flows and consumer confidence in the coming months.

Tariffs pushing companies to reshore are running headfirst into high U.S. production costs and minimal ability to pass those costs onto customers, according to Reuters. The result? Many are stuck continuing with cheaper Chinese manufacturing or squeezing margins — dampening growth, hiring, and investment.

Plufl, a startup behind the "dog beds for humans," explored U.S. production after a 145% tariff on Chinese imports. Producing in Nevada would cost $250 per unit, compared to $100 in China (including faux-fur cover), making a U.S.-made version too expensive for retailers like Costco.
Rather than increase prices (from ~$299), Plufl opted to continue manufacturing in China and absorb higher costs through shipping efficiencies and tighter margins.

Moment Drinks: Wisconsin-based canner Aisha Chottani faced a 20% rise in aluminum can costs due to tariffs. Albertsons refused to accept price hikes for her $3.99 beverages, forcing her to absorb costs or risk losing shelf space.

Bugaboo, a Dutch stroller manufacturer, uses its Chinese factory. With high U.S. tariffs, it's exploring moving production elsewhere — a time-consuming and expensive process. In the interim, it has raised U.S. prices by $50–300 but still absorbs part of the tariff burden.

Ultimately, while there's political momentum to boost domestic manufacturing, current economics make it infeasible for many products.